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A recent survey of Chinese companies in the US found that despite growing concerns about US-China relations and the overall business environment, the majority remain optimistic about the market in the long term.
The annual survey by the China General Chamber of Commerce in the US found that almost 60% of companies aim for a stable level of investment and about 30% plan to increase it.
“There continued to be a notable level of long-term optimism, with the majority expressing positive future sales expectations,” CGCC said, adding that the survey reflected “a commendable sense of optimism, determination and resilience.”
The survey was conducted in April and May this year and asked nearly 100 Chinese companies from various industries about their performance and prospects.
According to the report, Chinese firms remain committed to the U.S. market despite increasingly negative sentiment about the overall business environment due to rising trade tensions between the world’s two largest economies.
Over 60% of respondents saw a deteriorating business environment in the US. Meanwhile, concern about a “stalsis in China-US political and cultural relations” rose to 93% from 81% last year.
Over the past year, the Biden administration has tightened restrictions on Chinese companies, scrutinized certain Chinese-dominated industries, imposed new sanctions on various Chinese firms and goods, and sought to block Chinese ownership of certain companies and platforms entirely.
In the survey, more than 65% of respondents cited “complexity and vagueness” of U.S. regulatory and sanctions policies toward Chinese companies as the biggest challenge in branding and marketing in the U.S
According to 59% of respondents, “pervasive anti-China sentiment in American public opinion” was ranked the second biggest challenge for branding and marketing.
“This [results] “This underscores the complicated political environment and hostile public sentiment influenced by ongoing US-China trade tensions,” the report said.
According to the survey, a challenging market environment has largely impacted Chinese companies’ profitability as companies faced a “significant decline in performance” last year, similar to 2020 during the coronavirus pandemic.
More and more companies reported falling sales, especially those with significant declines of more than 20%. The share of companies in this category increased from 13% in 2022 to 21% in 2023.
Hu Wei, chairman of the CGCC and president and CEO of Bank of China USA, called on Chinese and US companies to strengthen coordination to reduce trade tensions and political obstacles.
“In the long term, trade and investment have always been the cornerstone of the US-China relationship,” he said, adding that despite various uncertainties, China remains the US’s third-largest trading partner and largest importer.
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2024-06-26 06:56:25
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